Item 16 - 1st Amendment to On -Call Agreements for Affordable Housing Financial, Analytical, and Advisory Services

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First Amendment to Agreements for Housing Financial, Advisory, and Analytical Services May 16, 2023 Page 2 involved the allocation of $13,805,577 in affordable housing funds and 66 project -based vouchers that will lead to the creation of 218 new units of affordable and permanent supportive housing. In particular, KMA assisted staff with extensive financial analyses and technical support for these three projects. Representatives from both KMA and RSG assisted staff with the City's most recent Request for Proposals for Affordable Housing Development (RFP # 21-136) issued on December 8, 2021 with City Council approval. This RFP led to an award of funds for the development of WISEPlace and a commitment of funds for the development of six new affordable homeownership opportunities with Habitat for Humanity of Orange County. In addition to the consulting services needed to finance affordable housing projects, KMA recently completed an update to the City's Affordable Housing Opportunity and Creation Ordinance manuals and Inclusionary Housing Plan forms. These manuals had not been updated since 2015. RSG performed a disparate housing analysis for the requested project at 2202 East First Street where RSG analyzed a number of data points to help the City determine if the project was consistent with fair housing laws and City planning policies. Furthermore, RSG assisted housing staff with compliance monitoring activities to ensure that tenants in City -funded affordable housing units were not overpaying for housing, income qualified, and living in decent, safe, and sanitary housing. In addition, DRA also provided consultation services for density bonus agreements and for local home owner's association (HOA) issues for troubled HOAs in the City. The work on all of these major projects exhausted the $250,000 in available funds for these three on -call agreements. Therefore, staff is returning to the City Council and the Housing Authority to request approval to amend these three agreements (first amendment) to add an additional $250,000 (Exhibits 1, 2, and 3). Staff is also seeking to extend these agreements by an additional two years (from three- year agreements to five-year agreements). In the coming months, staff will be working with KMA for additional consulting work on North Harbor Village, a proposal from the Illumination Foundation to develop permanent supportive housing on Bewley Street (pending consideration by the City Council), the loan closing for FX Residences, and a possible Homekey application to the State of California, amongst various other projects and priorities. Staff is also working on a new request for proposals for affordable homeownership opportunities to bring to the City Council. Staff anticipates needing additional affordable housing financial, analytical, and advisory services to support us with the volume of grants and activity to provide affordable housing for our residents. FISCAL IMPACT Prior to utilizing any of these on -call services, staff will ensure sufficient funds are available in the appropriate program budget and will track expenditures to ensure the City and Housing Authority do not exceed the aggregate $500,000 maximum total. The City anticipates that a variety of affordable housing funds may be utilized for these on -call agreements, including, but not limited to the following programs: